Book Image

AWS FinOps Simplified

By : Peter Chung
Book Image

AWS FinOps Simplified

By: Peter Chung

Overview of this book

Much like how DevOps is a combination of cultural philosophies, practices, and tools that advocate a collaborative working relationship between development and IT operations, FinOps encourages the same collaboration between technology and finance team, making it key relationship to establish and maintain for any thriving business. This book will help you understand how organizations with a mature FinOps practice can decentralize cost ownership to developer teams and encourage cross-functional collaboration between business, finance, and technology, enabling speed, innovation, and business growth. You’ll focus on structuring your organization to form the right FinOps team, including a Cloud Center of Excellence, and learn how to implement practical cost savings measures with AWS tools to optimize costs in both the short as well as long term. By the end of this cloud FinOps book, you’ll be ready to implement a successful Cloud FinOps practice for your organization to get the best value from the AWS cloud for your workloads.
Table of Contents (18 chapters)
Free Chapter
2
Part 1: Managing Your AWS Inventory
7
Part 2: Optimizing Your AWS Resources
12
Part 3: Operationalizing FinOps

Leveraging steady state discounts

Paying for the IT services you need when you need them is the very nature of paying for AWS cloud resources. This embodies the on-demand nature of the cloud and essentially comprises the trade-off of capital expenses for variable expenses. However, this isn’t the only way you can pay for what you use. In fact, Amazon EC2 instances provide you with several choices: on-demand, reserved instances (RIs), Savings Plans (SPs), and Spot.

On-demand pricing is just as it sounds – you pay for however long the instance runs at an hourly rate. AWS provides the on-demand hourly rate for each of their numerous instance types on their Amazon EC2 pricing page. The hourly rate will depend on several instance parameters such as the Region where you launch your instance, the operating system (OS), the type of instance, and the size. Intuitively, you will be charged at a higher hourly rate for a larger instance than a smaller instance.

How RIs work...